Wood River times. [volume] (Hailey, Idaho) 1882-1915, 1887-05-26
ALASKAN HISTORY. I
SOMETHING ABOUT 1.-THE WESTERN
UNION RUSSIAN EXTENSION"

| OINt6tN oO0OtSiN ~ e'NSsSs"
The Days When Transferable Teleg-
raphy Was Yet an Experiment-Some
Inside History About the Purchase of
Alaska.
Especial Correspondence
t. ROCHESTER,, N. ", May 10.
An investigation Of the rumor widely
afloat in the newspapers that Alaska, for
which the United States government paid
$7,2OO, 900 in 1867, might have been bought by
Hiram Sibley, president Of the western
Union Russian Extension" for $3.50, 600, in
1866, brings to light an interesting chapter in
the history of Alaska and Of the magnetic
telegraph. al
The early summer of 1866 saw the two
great enterprises of telegraphy-the Atlantic
cable and the Russian overland telegraph
running a race, as it were, for the earth,s
magnetic girdle. The Atlantic Cable COM
pany, after four disastrous efforts and the
loss of two cables and millions OF dollars. to
say nothing of public confidence in "long
submarines" was slowing away in the capa-
cious hold OF the Great Eastern the gigantic
coils of smother venture. Atlantic stock
could be bought for a song-and the song of
the seller was joy at getting rid of it at all.
Russian stock was booming and in demand at
| from 30 to 10 per cent. above par The world
believed in the grand international Western
Union extension, by which the telegraphic
systems of Russia and the United States were
to be united via Behring straits at the
mouth Of the Amoor, the Pacific port of ST.
IBERIA.
Overtures for the purchase of the rights of
the Russian-American Fur company in the
interest of the Russian overland, or Collins
line, as it was commonly called, had been
made to that venerable monopoly and autoc-
racy Of Alaska by Mr.. Collins, the orr inator
of the line and by our minister at the Court
OF st. Petersburg, Hon. Cassius M. Clay.
~
The consent of the Russian government
would have to be obtained before a transfer
of the rights OF the Russian American Fur
company could be made, and something more
than the word and bond of private citizen
like Mr.. Collins would be required. This was
before the Western Union had adopted tba
project which had reached the point where
capital, pluck and executive ability were de-
manded. Collins naturally looked to Hiram
Sibley, the motive power in the federation of
the Western Union and the building of tho
Pacific telegraph. Mr.. Sibley gave hearty
Endorsement to the scheme, and the contract
between the Western Union and Collins was
signed in Rochester, NJ Y, May 2, 1864
The China branch line was to be one of the
many important evolutions of the '.Russian
Overland" the one making the acquisition Of
the rights of the Russian American Fur conn
pany desirable if not imperative. To nepoti-
ate for these rights, and to secure in the CON
tract to be signed bstween the Russian gov
eminent and the Western Union n corract
Interpretation of certain clauses, Sbley and
Collins went to st. Petersburg in the winter
of 1S64-lS65. Mr.. Sibley carried with him an
important paper. 1t was a statement of the
financial condition Of the Western Union
company ana Its relation to the Russian
Extension, signed by the president and score
tary OF the Western Union Russian Exten-
sion, with certificate of Endorsement signed
oy the governor OF the state of New York, to
which were expended letters confirmotorv
from the leading bankers of the city of New
York, vouching for the undoubted resnons;-
biiity and liability, not only of the Western
Union Russian Extension, but of its president |
bearer of the letter. Unon
this paper Mr.. Sibley obtained in London :,
letter Of credit for $3.50, 900, with which and
his credentials he was amply prepared for |
any emergency.
He was seeking the accomplishment of two
objects. First, satisfactory contract be-
'ween the Russian telegraph department and
he Western Union. Second, a perpetuaI
ease for the route of the telegraph tbrougb
he territory of the Russian American com
,any.
He gained all he sought in the contract
The other matter seemed far easier of solu-
ion, for the rights of the Russian Fur com
AMY were in the market. The financial
roubles of the great monopoly were no Sc
ret. There were complications between the
russian Fur company and the Hudson Bav
ompany. 1t looked as if the former mich,
ell out to the latter, and so place England
rtually in possession of Alaska, a state of
lungs Russia did not like to contemplate,
nd yet Russia did not went to assume the
rejection Of trade and commerce in Alaska.
5 she must If the affairs of the Russian Fur
ompany were transferred to the govern
nent. The Alaska problem was a vexation
Russia. That the great telegraph proiec; |
you'd finally solve that problem was beIie> eo
financial circles by those who had no cer
am knowledge that overtures tending I,
UGH solution had been made by .ilI,,.
arty.
"Hiram Siblev," writes Cassius NJ. CLAW
| ,
he time, "was the first to talk of buyipe a
art of Alaska for the placing and manage
nent OF the telegraph line and plant. Under
is instructions was sounding the Russian
overnment. The Western Union Russian
xtension was first in suggesting to the Rus
ian government the sale of the province OF
Alaska, and pressed upon Mr.. sibley II
ossession Of the land for telegraph purpo,,
a perpetuity."
When Mr.. Sibley was approached upon the
ab1ect OF buying up the rights of the RUSSIA
american company he quietly set about as
ertaining the exact condition of the con-
any's financial affairs, and the result of a
borough investigation was to convince him
nat the concern was verging on bankruptcy.
nat the catch" was declining, and that its
ghts were within easy reach of the Western
'nion. I'd. =
why pay $4,000 for the rights of tn.
'ussian- American company" asked Prince
Iortschakof of Mr.. Sioley, awhen for thar
I'M you can get the fee simple to the tract
on wantp
Inc contemplated track was strip extend
g from the coast inland from $50 TO aOO
plum of the Alaska pudding.
.*s